Michigan UIA faces $15B in suspected overpayments following Deloitte audit

The Oversight Subcommittee on State and Local Public Assistance Programs convened on May 22, 2025, to address significant issues surrounding unemployment assistance in Michigan. The meeting focused on the challenges related to overpayments in the Unemployment Insurance Agency (UIA) and the implications of agency errors.

The session began with a discussion on the nature of waivers for penalties, interest, and overpayments, particularly those attributed to agency errors as defined in the Employment Security Act. Committee members sought clarity on how these waivers are applied and the extent of agency responsibility in these cases.

A key point of discussion was the findings from an audit conducted by Deloitte in 2020, which estimated that over $8 billion in Pandemic Unemployment Assistance (PUA) overpayments were potentially linked to fraud or intentional misrepresentation. This figure was corroborated by the Office of the Attorney General (OAG), which suggested that the total overpayments could reach as high as $15 billion for the first half of 2020 alone. The committee members expressed concern over these staggering figures, highlighting the financial implications for the state and the need for accountability within the UIA.

Throughout the meeting, there was a consensus on the necessity for improved oversight and corrective measures to prevent future overpayments. The discussions underscored the importance of accurate data and effective management of public assistance programs to ensure that funds are distributed appropriately and to those in genuine need.

In conclusion, the meeting revealed critical insights into the financial mismanagement within Michigan's unemployment assistance programs, with a clear call for enhanced oversight and reform to address the identified issues. The subcommittee plans to continue its examination of these matters in future sessions, aiming to implement solutions that will safeguard public funds and support the state's residents effectively.